Key takeaways
- The ICBA sues the OCC in the US District Court for the District of Columbia over crypto trust charters
- The suit seeks to vacate the OCC's March 2026 rule, Interpretive Letter 1176 and Protego's charter
- A win could block future OCC charters under the framework, including Block's pending Builders Bank & Trust application
The Independent Community Bankers of America (ICBA) sued the Office of the Comptroller of the Currency (OCC) on Friday, October 2, 2026 in the US District Court for the District of Columbia. The ICBA argues the OCC exceeded the authority Congress granted it by letting crypto firms obtain national trust bank charters.
ICBA President and CEO Rebeca Romero Rainey said the OCC's decision to allow companies to obtain national trust bank charters to conduct substantial non-fiduciary activities exceeds the authority Congress granted the agency. An OCC spokesperson said the agency does not comment on litigation, according to CoinDesk.
What the ICBA Wants Vacated
The ICBA represents more than 5,000 U.S. community banks, the same lenders that now face crypto firms holding national trust bank charters. The suit seeks to vacate the OCC's March 2, 2026 rule, Interpretive Letter 1176 and the conditional charter granted to Protego.
The ICBA says the charters let crypto firms in without the same oversight, putting community banks at a severe competitive disadvantage, CoinDesk reported. That complaint is about oversight and competition, and the ICBA filed it against the OCC rather than against any single charter holder.
Block's Builders Bank Bid in the Line of Fire
If successful, the suit could block the OCC from issuing future charters under the contested framework. That would include Block's pending application for Builders Bank & Trust, N.A.
A narrow ruling covering only Protego would leave the framework intact, while a broader win could block future charters under the contested framework.
The ICBA case now sits in the US District Court for the District of Columbia, and the OCC does not comment on litigation. Because the ICBA argues the OCC exceeded the authority Congress granted it, the charter question for Block's pending application for Builders Bank & Trust, N.A. now runs through a federal court as well as the OCC.
Why It Matters
The ICBA says crypto trust charters put community banks at a severe competitive disadvantage, and its suit could block the OCC from chartering Block's Builders Bank & Trust, N.A. For Bitcoiners still under any illusion about the effects of government regulation, the ICBA suit is another example of incumbents actively leveraging regulation to keep potential competition out of their market. Bitcoin custody and settlement need no national trust bank charter from the OCC, and we think the ICBA suit over which crypto firms may obtain national trust bank charters is a reason to keep your own keys.
